COST ACCOUNTING

Paper Code: 
COM 102
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Outcomes

Learning and teaching strategies

Assessment Strategies

 
 

On completion of this course, the students will be able to:

CO 6: Examine the items of expenditure to identify the different types of cost in a manufacturing unit. 

CO 7: Evaluate the material cost and labour cost  and justify the use of various inventory control methods and wage rate system

CO 8:Analyze the overheads for its proper  apportionment, allocation and absorption 

CO 9: Create cost sheet for effectively ascertaining the cost of products using Unit costing method.

CO 10:Analyse different types of cost related to contracts and be able to compute the cost of construction contracts

Interactive Lectures, Discussion, Tutorials, Reading assignments & Solving Questions.

 

 

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group Projects

  

 

9.00
Unit I: 
Introduction

• Meaning and definition of cost accountancy

• Nature and Scope of Cost Accounting

• Cost Concepts, Distinction between Financial and Cost Accounting.

• Elements of Cost

• Cost Statements: An Introduction

• Introduction to Cost accounting standards: Objectives and advantages of cost accounting standards

Material

  • Material Cost Management
  • Need for Efficient Purchasing
  • Storing of Materials, Methods of Inventory Control
  • Some Specific Techniques Related to Operating Control System viz. ABC Analysis, VED Analysis, JIT, FSN
  •  Material Cost and its Components
  • Economic Order Quantity
  • Inventory Levels i.e. Reorder Level, Maximum Stock Level, Minimum Stock Level, Average Stock Level, Methods of Issue Pricing i.e. LIFO, FIFO, Simple Average, Weighted Average, HIFO, Standard Price and Base Stock Method.

 

9.00
Unit II: 
Labour

• Recruitment, Recording of time and wages
• Time Keeping and Time booking
• Job Evaluation and Merit rating
• Labour Turnover: meaning and nature
• Methods of calculating Labour Turnover
• Methods of remunerating Labours
• Incentive Plans
• Allocation of wages
• Idle Time: meaning and causes, Treatment of idle time, Over time.

9.00
Unit III: 
Overhead

• Meaning, Collection
• Classifications, Apportionment
• Allocation and Absorption of overheads;
• Treatment of interest on capital
• Research and development expenses.

9.00
Unit IV: 
Single Output or Unit Costing

• Cost sheet
• Adjustments in cost sheet
• Treatment of Scrap, defectives,
• Absorption of overheads and calculation of Tender price
• Job Costing.

9.00
Unit V: 
Contract Costing

• Contract accounting
• Methods of determining contract price
• Escalation clause
• Profit on incomplete contracts
• Different types of problems related to contract.

Essential Readings: 

• Jain, Khandelwal & Pareek, Cost Accounting Ajmera Book Company, Jaipur
• Agarwal, Jain, Sharma, Shah & Mangal , Cost Accounting Ramesh Book Depot, Jaipur

References: 

SUGGESTED READINGS:
• Arora, M.N.,Cost Accounting Principles and Practice, Vikas Publication, New Delhi
• Kishore R.M.., Cost Accounting Taxmann’s New Delhi
• Nigam, B.M Lal,& Jain, I.C. , Cost Accounting PHI, New Delhi
• Maheshwari, S.N, Cost Accounting Mahavir Publication
• Jawahar Lal, Cost Accounting Tata Mcgraw Hill, New Delhi
• Madegowda. J. Cost Accounting Himalaya Publishing House

e RESOURCES:
• https://devlibrary.in/managerial and cost accounting/
• https://www.icsi.edu/media/website/CostAndManagementAccounting.pdf
• https://books.google.com/books/about/Cost_Accounting_Text_and_Problems.h...

JOURNALS:
• The Indian Journal of Commerce
• FIIB Business Review

Note: The candidate shall be permitted to use battery operated pocket calculator that should not have more than 12 digits, 6 functions and 2 memories and should be noiseless and cordless.

Academic Year: 
2022-2023
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